In 2002 hope of ending Sri Lanka’s long-standing civil war, which had raged since 1983 and cost more than 60,000 lives, at last emerged. Following the return to parliamentary control of the United National Party (UNP) in December 2001 and weakened international support for the secessionist Liberation Tigers of Tamil Eelam (LTTE), Norwegian mediators negotiated an indefinite cease-fire in February. Internal political opposition delayed the start of peace talks, but in September the ban on the LTTE was lifted and talks began at a naval base in Thailand.

Profound war weariness on both sides seemed to have motivated serious negotiations. Following the initial round of talks, the LTTE unexpectedly dropped its claim for independence, saying it would accept “genuine autonomy and self-determination” in place of a separate state. The two sides agreed to cooperate on such matters as clearing land mines and resettling displaced persons.

After the initial talks, Pres. Chandrika Kumaratunga, leader of the opposition People’s Alliance, repeated earlier demands for the LTTE to disarm. Although seven people were killed in a brief clash on Sri Lanka’s east coast in mid-October, efforts to incite opposition to the negotiations among southern Sinhalese made little headway. Additional negotiations occurred in October and December. Though many details were still unresolved, at year’s end it seemed likely that peace would finally be achieved.

Sri Lanka’s economy contracted in 2001, but slow economic growth resumed in 2002, and tourism began to recover. The UNP government was committed to deregulation and privatization. Much needed to be done, however, to refurbish neglected infrastructure and restore business confidence. Population growth slowed to 1%, and the population was aging rapidly.

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